In August, the OFT announced it was considering a proposal by Global Radio to divest several radio stations in the Midlands - a move aimed at appeasing its competition concerns over Global's GCap Media purchase. Global offered to divest its Heart 106 station in the East Midlands and GCap's BRMB, Beacon, Mercia and Wyvern in the West Midlands.
But eight months after securing provisional clearance for the deal from the OFT, Global Radio and the regulator have not yet finalised these so-called "undertakings".
An OFT spokesman said: "The OFT is negotiating on draft terms of the undertakings [instead of a referral to the Commission] with Global. Once agreed, the OFT is obliged to consult publicly and third parties will be given an opportunity to comment."
The completion of such a sale was intended to prevent a referral of Global Radio's GCap aquisition, first agreed on 31 March last year after a four-month pursuit by the Charles Allen-led outfit, to the Commission.
In the weeks following the OFT's August announcement, it is understood Global began the sale process. It is thought the sale reached the third round of bidding, from parties including Phil Riley, former chief executive of Chrysalis Radio, Bauer Media and Midlands radio entrepreneur Mike Owen.
A senior radio executive said: "You can't blame [Global Group chief executive Ashley] Tabor for not wanting to sell what were valuable assets at the lowest point of the market. But the question now remains whether he will press the nuclear button and take the risk of referring [Global Radio's GCap purchase] to the Competition Commission, which would be the most unbelievable commercial risk."
Global Radio declined to comment.
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